Until Congress began to periodically raise benefit levels to adjust for inflation, the first recipients of Social Security checks:
A. lost value over time, because the payments were not adjusted for inflation.
B. received a fixed amount that caused their real income to decline.
C. grew poorer over time, because the payments were nominal amounts.
D. All of these statements are true.
D. All of these statements are true.
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The model that economists use for illustrating the process of individual choice in a situation of scarcity is the _____, sometimes also called the opportunity set, a diagram which shows what choices are possible.
A. opportunity set B. consumption choice C. time value of money D. risk premium
Suppose you have just opened a store to sell espresso machines. Both you and a competing store buy this machine from a manufacturer for $130 each
Your competitor who has a store of the same size as yours is currently selling about 10 machines a month at a price of $200 per machine. You expect to sell about 6 machines a month at a price of $220 per machine. If you lower your price, you expect to make a loss. Which of the following could explain why your competitor is able to profitably sell the machine at a lower price although the cost of purchasing the machine is the same for the both of you? A) The competing store probably has a lower marginal cost of production. B) The competing store's goal is to maximize revenue and not profit. C) The competing store probably has a lower average cost because average fixed cost falls as output increases. D) The competing store probably has a lower average variable cost of production.
The deliberate change in taxes, transfer payments, or government expenditures to achieve macroeconomic policy objectives is known as
A) expansionary fiscal policy. B) contractionary fiscal policy. C) discretionary fiscal policy. D) automatic stabilizers.
All of the following are examples of financial securities except
A) checking accounts. B) corporate bonds. C) shares of stock. D) Treasury bonds.